A transaction is a financial event that causes the change of PDA elements. Accounting only processes transactions. Non-transaction events are not processed by accounting. Therefore, the first stage of accounting is to identify whether a business event is a transaction or not. Business events that are transactions will be recorded on the transaction receipt. Various types of proof of transactions are made in accounting, whether made by the company or made outside parties received by the company.

B. Measurement

Business events that are transactions should be measurable in units of money. Measurement is also intended to establish the value of money recognized by accounting. For example, inventory buys a building for a purchase price of $ 200. The purchase transaction of this building allowed the company to pay taxes on behalf of $ 60, and a $ 90 building partial overhaul. In this case, the accounting must determine the value of money recorded in the Building account.

C. Journaling

Jurisprudence can be identified with the chronological summary, that is to record transactions on a time basis. With this journaling, the company can know the financial information in one (1) period (can be daily, weekly, and partly). Journalizing transactions are stored in journal books. Transaction information

which should be noted in the journal books are:

Transaction date,

Account accounts that are debited and on credit, along with a short description

Account code, and

Total monetary value.

D. Move to Big Book

After the journal, the transaction is transferred to the general ledger. The shifting activity can be identified by the grouping or classification function of the accounts generated from journaling. The accounts in the journal books are grouped according to their accounts.

In other words, accounts in the journal books are moved to the same account in the ledger. The ledger is a collection of accounts. With these transfers, the company can know the position (balance) of the rupiah value of each account at any time. Information about account codes and account names in journal books is used as a reference to move accounts from journal books to ledgers.

E. Preparation of Financial Statements

At the end of the period, the preparation of the financial statements consists of the following sequence of activities:

Preparation of trial balance; calculates the balance of each account in the ledger and lists it into the trial balance.

Adjusting of adjusting entries; records transactions that are only made at the end of the period to follow GAAP and to correct any recording transactions, if any.

Preparation of a trial balance after adjusting entries; presents the balance of each account after the entry of the adjusting entries.

Profit/loss accounting and reporting; knowing the profit or loss earned by the company in one period, and making a profit/loss statement (read profit and loss statement).

Recording closing entries; to enlarge (close) the nominal accounts into the clearing account of the Profit / Loss (ILR) overview, close the clearing account of the ILR to the Capital account and close the Personal account to the Capital account.

To facilitate the preparation of financial statements, companies typically create worksheet sheets or worksheets (worksheets). Although the use of the worksheet is optional, companies typically use the worksheet in order to prepare the financial statements. The worksheet is particularly useful companies that compile financial statements manually. The form of worksheet adjusted to the needs of the company.

Summary

The accounting process consists of two-time groups, ie during the period and at the end of the period. During the period the company undertakes 1) Identification of transactions, 2) Measurements, 3) Journaling, and 4) Move-to-book ledger. At the end of the period, the company prepares the financial statements using a worksheet lane tool. Although optional, the worksheet is also called working papers are commonly made.

The preparation of financial statements produces four (4) types of reports. The profit/loss report presents information about the results of a company's business during one period. The change in the capital report provides information about changes in capital over a period. The balance sheet presents the financial balance information of real accounts on a certain date. The statements of cash flow present information on the cash inflows and outflows of cash for a period.

Imam Larh00:44WeaccountingUnited Kingdom

Accounting Overview

Posted by Imam Larh on Tuesday, 3 April 2018

A. Identification of Transactions

A transaction is a financial event that causes the change of PDA elements. Accounting only processes transactions. Non-transaction events are not processed by accounting. Therefore, the first stage of accounting is to identify whether a business event is a transaction or not. Business events that are transactions will be recorded on the transaction receipt. Various types of proof of transactions are made in accounting, whether made by the company or made outside parties received by the company.

B. Measurement

Business events that are transactions should be measurable in units of money. Measurement is also intended to establish the value of money recognized by accounting. For example, inventory buys a building for a purchase price of $ 200. The purchase transaction of this building allowed the company to pay taxes on behalf of $ 60, and a $ 90 building partial overhaul. In this case, the accounting must determine the value of money recorded in the Building account.

C. Journaling

Jurisprudence can be identified with the chronological summary, that is to record transactions on a time basis. With this journaling, the company can know the financial information in one (1) period (can be daily, weekly, and partly). Journalizing transactions are stored in journal books. Transaction information

which should be noted in the journal books are:

Transaction date,

Account accounts that are debited and on credit, along with a short description

Account code, and

Total monetary value.

D. Move to Big Book

After the journal, the transaction is transferred to the general ledger. The shifting activity can be identified by the grouping or classification function of the accounts generated from journaling. The accounts in the journal books are grouped according to their accounts.

In other words, accounts in the journal books are moved to the same account in the ledger. The ledger is a collection of accounts. With these transfers, the company can know the position (balance) of the rupiah value of each account at any time. Information about account codes and account names in journal books is used as a reference to move accounts from journal books to ledgers.

E. Preparation of Financial Statements

At the end of the period, the preparation of the financial statements consists of the following sequence of activities:

Preparation of trial balance; calculates the balance of each account in the ledger and lists it into the trial balance.

Adjusting of adjusting entries; records transactions that are only made at the end of the period to follow GAAP and to correct any recording transactions, if any.

Preparation of a trial balance after adjusting entries; presents the balance of each account after the entry of the adjusting entries.

Profit/loss accounting and reporting; knowing the profit or loss earned by the company in one period, and making a profit/loss statement (read profit and loss statement).

Recording closing entries; to enlarge (close) the nominal accounts into the clearing account of the Profit / Loss (ILR) overview, close the clearing account of the ILR to the Capital account and close the Personal account to the Capital account.

To facilitate the preparation of financial statements, companies typically create worksheet sheets or worksheets (worksheets). Although the use of the worksheet is optional, companies typically use the worksheet in order to prepare the financial statements. The worksheet is particularly useful companies that compile financial statements manually. The form of worksheet adjusted to the needs of the company.

Summary

The accounting process consists of two-time groups, ie during the period and at the end of the period. During the period the company undertakes 1) Identification of transactions, 2) Measurements, 3) Journaling, and 4) Move-to-book ledger. At the end of the period, the company prepares the financial statements using a worksheet lane tool. Although optional, the worksheet is also called working papers are commonly made.

The preparation of financial statements produces four (4) types of reports. The profit/loss report presents information about the results of a company's business during one period. The change in the capital report provides information about changes in capital over a period. The balance sheet presents the financial balance information of real accounts on a certain date. The statements of cash flow present information on the cash inflows and outflows of cash for a period.